TPM Development Project: Exploring a Transitional Congestion Charge

The TPM Guidelines require us to consider including a TCC in our TPM proposal.  

In October 2020, we ran two TCC workshops with industry representatives and invited feedback from interested parties (see below for more information). This valuable feedback informed our analysis of the potential role of a TCC.   

Subsequently, through our checkpoint process with the Electricity Authority, we gained greater clarity of their interpretation of the Guidelines related to the purpose of a TCC.  As a result, we completed a qualitative risk assessment, and have been unable to reasonably conclude we can propose a TCC at this time.  

We reached this conclusion because we consider the existing tools and mechanisms available to Transpower, as both grid owner and system operator, are adequate to mitigate short-term supply and congestion risks.   

However, the Guidelines do allow us to develop and propose a TCC later - when it can be informed by better information about any congestion risk it needs to address. 

Our engagement approach

We held two online workshops to facilitate informed discussion with invited guests, representative of the electricity industry. The guests took the opportunity to put their questions to experts from Transpower in a discussion chaired by an independent facilitator. We published the recordings and transcripts of these workshops, invited feedback on the topics and ideas raised, and will take all this into account when we respond to the Electricity Authority with a recommendation on the potential TCC option.

We believe this format provided us the best opportunity to meaningfully engage in an online environment with those who wished to discuss a potential TCC, and still made the process accessible to all. The preparatory material and recordings of the workshops are below. 
 

Workshop process

Pre-workshop material

Workshop information and list of participants

Workshop recordings and transcripts 
 

Feedback

We invited feedback from anyone interested in providing their views on a possible TCC and to issues raised during the workshops. Feedback was due on 21 October, and published below on 22 October. 
 

Feedback received
All feedback received on TPM Transitional Congestion Charge [ pdf 4.77 MB ]
ENA feedback on TPM Transitional Congestion Charge [ pdf 160.63 KB ]
IEGA feedback on TPM Transitional Congestion Charge [ pdf 980.3 KB ]
KCE feedback on TPM Transitional Congestion Charge [ pdf 104.57 KB ]
Mercury feedback on TPM Transitional Congestion Charge [ pdf 420.69 KB ]
MEUG feedback on TPM Transitional Congestion Charge [ pdf 238.76 KB ]
Network Waitaki feedback on TPM Transitional Congestion Charge [ pdf 101.31 KB ]
Northpower feedback on TPM Transitional Congestion Charge [ pdf 137.27 KB ]
NZ Steel feedback on TPM Transitional Congestion Charge [ pdf 338.61 KB ]
NZWEA feedback on TPM Transitional Congestion Charge [ pdf 203.7 KB ]
Orion feedback on TPM Transitional Congestion Charge [ pdf 183.17 KB ]
Refining NZ feedback on TPM Transitional Congestion Charge [ pdf 923.02 KB ]
Tilt feedback on TPM Transitional Congestion Charge [ pdf 131.9 KB ]
Trustpower feedback on TPM Transitional Congestion Charge [ pdf 996.6 KB ]
Report accompanying Trustpower feedback - Transitioning to the New TPM by The Lantau Group [ pdf 328.66 KB ]

 

Our response

In November, we published a summary and response document to address the feedback we received.

Response document
TPM Transitional Congestion Charge Summary and Response [ pdf 659.07 KB ]